5. CONTENTS
STARTING DIVAS NEW CLOTHING STORE
EXECUTIVE COMPANY SUMMARY
COMPANY DESCRIPTION
RELATED READING
PRODUCT & SERVICES
MARKET ANALYSIS SUMMARY
MARKETING PLANS
FINANCIAL PLANNING & FUNDING
GROWTH EXPANSIONS
MARKET SEGMENTATION
TOP TEN FACTORS WHY WOMEN SHOP FROM DIVA
CUSTOMER NEED & WANTS
POSITIVE & NEGATIVE FACTORS
CONCLUSION
6. STARTING DIVAS NEW CLOTHING STORE
• RUNNING A CLOTHING STORE
PRESENTS YOU WITH MANY ELEMENTS
TO CONSIDER, SUCH AS WHERE TO
GET YOUR CLOTHES, WHETHER TO
MAINTAIN A STORE FRONT AND/OR
ONLINE SALES, HOW MUCH TO MARK
UP CLOTHING ITEMS, AND HOW TO
MARKET YOUR STORE AND PROTECT
YOURSELF FROM LIABILITY
8. COMPANY DESCRIPTION
• WHEREAS YOUR EXECUTIVE SUMMARY
DESCRIBES THE MISSION AND VISION OF
YOUR COMPANY, YOUR COMPANY
DESCRIPTION, WHICH IS THE NEXT SECTION
OF YOUR PLAN, EXPANDS ON THE
COMPETITIVE EDGE OF YOUR BUSINESS
9. RELATED READING
• ORGANIZATION STRUCTURE AND
MANAGEMENT TEAM INFORM READERS OF
YOUR BUSINESS STRUCTURE, SUCH AS SOLE
PROPRIETORSHIP, CORPORATION OR
PARTNERSHIP, AND EXPLAIN WHO DOES
WHAT IN THE ORGANIZATION.
10. PRODUCTS AND SERVICES
• ELABORATE ON YOUR CLOTHING
LINES AND ANY OTHER
PRODUCTS/SERVICES YOU’LL SELL.
EXPLAIN THE BENEFITS CUSTOMERS
WILL EXPERIENCE BY BUYING FROM
YOU. USE THIS SECTION TO ASSURE
YOUR BUSINESS PLAN’S READERS
THAT THERE ARE PEOPLE
CURRENTLY INTERESTED IN BUYING
YOUR PRODUCT AND THAT FUTURE
SALES WILL ONLY INCREASE
11. MARKET ANALYSIS SUMMARY
• THERE ARE VARIOUS
ECONOMIC FORCES THAT
AFFECT APPAREL
RETAILERS. CONSUMER
CONFIDENCE IS THE MOST
IMPORTANT; PEOPLE DON'T
SHOP WHEN THEY ARE NOT
FEELING GOOD
YEAR
1
YEAR
2
YEAR
3
YEAR
4
YEAR
5
Potential
Custome
rs
Growth CAGR
High-
Income
Women,
30+, in
this area
5% 2,400 2,520 2,646 2,778 2,917 5.00%
Personal
Stylist
Custome
rs
30% 10 13 17 22 29 30.50%
Total 5.15% 2,410 2,533 2,663 2,800 2,946 5.15%
12. MARKETING PLAN
• DESCRIBE HOW YOU PLAN TO ADVERTISE TO
CONSUMERS SHOPPING FOR THE TYPES OF CLOTHES
YOU SELL. SHOW HOW YOUR PLAN WILL APPEAL TO
PEOPLE IN TARGETED WAYS; YOUR SHOPPER’S
DEMOGRAPHICS, INCLUDING AGE, EDUCATION,
INTERESTS AND LOCATION, SHOULD DIRECT YOUR
MARKETING EFFORTS
13. FINANCIAL PLANNING AND FUNDING
• FORECAST YOUR EXPENSES AND REVENUES IN THE FORM
OF INCOME STATEMENTS, CASH FLOW STATEMENTS AND
BALANCE SHEETS FOR FIVE YEARS. PROVIDE AN ESTIMATE
OF YOUR BREAK-EVEN POINT, OR WHEN YOUR CLOTHING
COSTS AND OTHER EXPENSES EQUAL YOUR REVENUE
14. GROWTH AND EXPANSION
• IT IS IMPORTANT FOR YOU AND YOUR INVESTORS TO
KNOW THE WAYS IN WHICH YOU PLAN TO GROW THE
BUSINESS IN THE FUTURE. PREDICT THE TYPE OF
GROWTH YOUR STORE WILL EXPERIENCE AND SET GOAL
MARKERS TO ACHIEVE IT.
16. TOP TEN FACTORS WHY WOMEN SHOP FROM
DIVA
Reason 2015 2016 Change
1. Has reasonable prices 78% 85% +7
2. Treats customers with respect 66 74 +8
3. Carries quality merchandise 66 72 +6
4. Doesn't pressure me to buy anything 61 70 +9
5. Convenient store hours 61 68 +7
6. Handles merchandise returns fairly 60 66 +6
7. I can always find what I want 61 65 +4
8. Carries a wide variety of items (e.g. colors,
sizes)
57 64 +7
9. Has outstanding customer service 55 63 +8
10. Makes it quick and easy to shop 53 61 +8
17. CUSTOMER NEEDS, EXPECTATIONS AND BUYING PATTERNS
• THE DIVAS CUSTOMER LOVES
TO SHOP AND ENJOYS GOING
TO BOUTIQUES. SHE IS
KNOWLEDGEABLE ABOUT
DESIGNER FASHIONS AND
TENDS TO SHOP FOR
SEASONAL WARDROBES TWICE
A YEAR PLUS PICKS UP
VARIOUS FASHION AND BASIC
PIECES THROUGHOUT THE
YEAR.
18. POSITIVE FACTORS
Clothing Industry Impact on Diva
Very low interest rates Cost of financing low
Easy availability of consumer credit Higher ticket sizes on credit card purchases
Relatively low unemployment, and very low
inflation
Stable employees & businesses
A relatively low personal savings rate Increased consumer spending
(Positive side of:) Significant continued layoffs
at larger corporations require job migration
Higher-educated employees
19. NEGATIVE FACTORS
Clothing Industry Impact on Diva
Weakening consumer confidence (influenced by
global terrorism, tension & uncertainty)
Decreased sales
Strong Euro Lower margins
Slowly increasing unemployment
Value and sale shopping (can also be positive
impact)
20. • I OUGHT, BEFORE ENDING, TO RETURN WHERE I
BEGAN: TO THE MISTRUST OF CLOTHES THAT HAS
BEEN EXPRESSED THROUGH HISTORY. ONE CANNOT
SAY THERE IS NO REASON FOR MISTRUST, FOR IN
ALL PERIODS SOME CLOTHES MAY SERVE VANITY,
AND HELP DISGUISE MOTIVES, AND BE PRODUCED
IN CONDITIONS OF EXPLOITATION. BECAUSE
CLOTHES ARE AN OUTER ENVELOPE THAT WE CAN
SELECT AND MANIPULATE JUST AS WE WISH,
CLOTHES PROBABLY ALWAYS WILL SERVE AS A
POWERFUL MEANS AND METAPHOR FOR VARIOUS
FORMS OF MISREPRESENTATION.
